The Definitive book on Trader Psychology

C

candletrader

Dearest Brethren

It is my firmly held contention that a significant proportion of the often quoted 90% of failed traders are those with positive expectancy approaches who simply cease trading or fail to execute consistently due to psychological reasons... and as a result of inconsistent execution, they join the ranks of traders with negative expectancy approaches...

I am fascinated by the area of Trader Psychology and would like to glean the views of your kind selves, my fellow Trading Brethren, on the best written treatment of this interesting and vital topic...

Below you will find a selection of books and authors... please comment on which book/books you have found particularly uselful and why you have found them useful... if there are any omissions, please add to the list...

I am seeking to purchase some high quality reading matter for the Summer doldrums...

Thank you.

As ever,
Candle


1) The Disciplined Trader: Developing Winning Attitudes
Mark Douglas
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846

2) Trading in the zone: maximizing performance with focus and discipline
Ari Kiev
http://www.amazon.com/exec/obidos/t...f=sr_1_2/002-8158891-6207244?v=glance&s=books

3) The secrets to emotion free trading: how to consistently act in your own best interest with your off-the-floor trading
Larry Levin

4) The psychology of risk: mastering market uncertainty
Ariv Kiev
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846

5) Trading to win: the psychology of mastering the markets
Ari Kiev
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846

6) 12 habitudes of highly successful traders
Ruth Barrons Roosevelt

7) Way of the Warrior Trader: the financial risk-taker's guide to samurai courage, confidence and discipline
Richard McCall
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846

8) Exceptional trading: the mind game
Ruth Barrons Roosevelt

9) Trading in the zone: master the market with confidence, discipline and a winning attitude
Mark Douglas
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846

10) please add any others that you have found very valuable for your personal trading, with associated comments

Thank you,
Candle
 
I'm getting through "The Trading Athlete" by Shane Murphy & Dough Hirschhorn. It basically adopts the mental training for athletes to traders.

I haven't read any of the books on your list, but it sounds like what you're talking about. I personally like it, since it's very direct and has helped me with a lot of my discipline problems.
 
Read both of the "trading in the zone" books by kiev and douglas. Liked both of the books. I don't think either one is better than the other because both books explained similiar things in slightly different ways and I think I learned from both of them in different ways.

"Way of the warrior trader", really liked this book. I liked the way he linked everything to samaruais. The dedication, preparation, execution, and overall minset, parts of this books are excellent.
 
I am currently reading Kievs newest book "hedge fund masters". So far so good. Basically he is redoing his previous books in a Q and A format. But its interesting so far.
 
3) The secrets to emotion free trading: how to consistently act in your own best interest with your off-the-floor trading
Larry Levin


this is available in pdf free, from Nqoos (alternated by the moderator due to complains).


(does anyone know who the author of the site is??)

i found it useful for a month, but then the technique of visualization that it covers seemed to stop working.

he leans on douglas a lot.


i personally am only familiar with douglas stuff (apart from the above book).

personally, i dont find his ideas of 'flawless execution' (forcing yourself to trade every edge that comes along - assuming you have a positive expectancy) to be helpful. i found i started trading sloppy and taking trades i normally wouldnt.

i have always looked for specific set ups, but my understanding of the market structure at each occurrence decides if i take the trade or not. in other words, selectivity is key to what i do. douglas' ideas seems to shoot that selectivity/intuitiveness in the foot (and my margin balance in the heart).

each to his own.
 
Quote from candletrader:

please add any others that you have found very valuable for your personal trading, with associated comments
More...
http://www.amazon.com/exec/obidos/A...7/sr=2-1/ref=pd_bbs_b_2_1/103-6912069-8613434
Dr. Maltz’s book addresses potentially self-limiting beliefs, thoughts, and behaviors in general, as opposed to specific to trading. In fact, much of what I have read by other authors, in trading specific books, seems to be derived from the same basic principles in Dr. Maltz’s book. It was easy for me to re-read the book (I read it last year, too early in my journey to really know what to do with the information I was given) and clearly see how I could apply the material to re-shape my trading habits – and other areas.

http://www.amazon.com/exec/obidos/t...103-6912069-8613434?v=glance&s=books&n=507846

again, not a trading specific book. But, offers some useful perspectives on money and money management. I especially liked the idea of viewing money as servants – money should be expected to work. It’s a quick, easy read. I think you can even get it free from a couple of websites.
The Disciplined Trader: Developing Winning Attitudes
Mark Douglas
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846
More...
I liked this book. I started reading it a couple of years ago, but, again, it was too early in my trading to really benefit from the material. It takes a lot of what I found in Maltz’s book and applies it directly to trading. It is very belief-focused.
12 habitudes of highly successful traders
Ruth Barrons Roosevelt
More...
Have it, but haven’t read it yet. However, from what I have read of Ruth, she too focuses on acknowledging and reshaping self-sabotaging beliefs.
Way of the Warrior Trader: the financial risk-taker's guide to samurai courage, confidence and discipline
Richard McCall
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846
More...
just got this book the other day, so I have only begun reading it.
Exceptional trading: the mind game
Ruth Barrons Roosevelt
More...
Again, I have it, started reading it, but haven’t really gone through it. I think it is kind of set up as a work-book type format, with worksheets and forms to complete as you read the text.
Trading in the zone: master the market with confidence, discipline and a winning attitude
Mark Douglas
http://www.amazon.com/exec/obidos/t...002-8158891-6207244?v=glance&s=books&n=507846
More...
I read this early on in my trading journey – which means I didn’t have the experience to know how I would need to apply what he wrote. Even in my trading infancy, I do know that I liked the book and suspected it would someday be useful :)

I’ve yet to purchase or read any of Ari’s work but I plan to soon.

Hope this helps.

Take care and gtty –

omni

BTW: i've never been involved in anything that required as much self-knowledge and self-control as trading. it is a constant and educational journey for me. the books i have commented on (that i have read) have been important for me as i proceed on that journey. and i'm not trying to sound all new-age, tree-hugger ... i am just convinced that those who consistently win in this game have put in a lot of effort to know themselves. mho ...
 
The best books on trading, especially on the psychology of trading, often have nothing to do with trading.

nitro
 
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